The percentage of films featuring LGBTQ characters has declined for the third consecutive year, according to the Gay & Lesbian Alliance Against Defamation's (GLAAD) latest report released Thursday. In 2025, only 20.4% of films, or 46 out of 225 releases, included LGBTQ characters, marking a substantial decrease from previous years.

GLAAD's findings indicate a particularly concerning trend in transgender representation, with zero transgender characters present across theatrical and streaming releases in 2025. This marks a stark contrast to 2023, when GLAAD reported a record high of 28.5% of films featuring LGBTQ inclusive content, which then dropped to 27.3% in 2023, followed by 23.6% in 2024.

For animated and family films rated PG and under, GLAAD noted that none of the 19 films released in 2025 featured LGBTQ characters, compared to two such films out of 26 the previous year. The organization highlighted this as "particularly concerning" in light of a public inquiry by the Federal Communications Commission regarding potential warning labels for television programming with transgender and nonbinary characters.

Despite the overall decline, GLAAD identified certain "success stories," particularly within the horror genre. Films such as "I Know What You Did Last Summer," "The Parenting," "Companions," and "Weapons" that featured LGBTQ characters reportedly earned more than double their production budgets back upon theatrical release, based on publicly available financial information. The report also indicated that independent studios and mid-budget films are continuing to lead the way in LGBTQ representation, rather than major studio blockbusters.

GLAAD President & CEO Sarah Kate Ellis stated that audiences are seeking original and inclusive stories, and that the industry risks alienating younger demographics if it fails to invest in LGBTQ characters. She noted that approximately 23% of Americans under 30 identify as LGBTQ, a demographic that represents a significant portion of enthusiastic moviegoers.

The trend in film representation mirrors broader societal shifts. A Gallup poll released in June showed a decline in moral acceptance of gay and lesbian relationships, which dropped to 62%, the lowest percentage recorded since 2016. In response to GLAAD's report, Newsbusters Senior Research Analyst Bill D'Agostino described the findings as a positive development for moviegoers, suggesting it indicates fewer filmmakers feel pressured to include LGBTQ characters to satisfy activist groups.